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Loh Boon How, Chartered Accountant
1) Company, LLP, trust body or co-operative society file(Sec 107C(7A)).
a) Estimate or
b) Revised estimate
For each YA by e-filling, wef YA2016 and subsequentYA.
E-filling
B. H. Loh & Associates
2) The employer is a company, the employer’s returnmust be submitted by way of e-filling (Sec 83(1B)).
W.e.f YA 2016
E-filling
B. H. Loh & Associates
A received from services to be rendered / use orenjoyment of property to be used Treated as grossincome for period the sum received,
A refund of income received deducted from thegross income.
Tax in gross income Deductible of expenses
Advance receipt Refund the payment
B. H. Loh & Associates
Basis period for business income
If a tax payer (public entertainer) fails to remit thewithholding tax and a penalty (in respect the serviceperform in Malaysia). (Sec 109A)
1. The tax deduction is not allowed, (Sec 39(1)(q)).
2. The DG may imposed a penalty for an incorrectreturn under Sec 113(2).
Wef 1/1/2016
Single deduction
B. H. Loh & Associates
Interest is due to be paid in any following YA, theperson must make a written claim for deduction ofinterest not later than 12 months from end of basisperiod the amount is due to be paid. (Sec 33(5)
DG may reduce the assessment in respect of theinterest deduction.
Wef YA 2016
B. H. Loh & Associates
Single deduction
Accrued of interest
12 months
due to be paid after 31.12.2017
2014 2015 2016 31.12.2017 1.1.2019
B. H. Loh & Associates
Single deduction
The companies with paid-up capital < or = RM2.5 M,are allowed to claim double deduction for R & Dexpenditures automatically, but not exceedingRM50,000 for each YA. (PU (A) 167/2011)
However companies are still required to submit to IRBfor approval
From YA 2016 – YA 2018.
Double deduction
B. H. Loh & Associates
IBA allowed to a tax payer who owns the building
Industrial Building Allowance
Schedule 3, ITA 1965
Description
37A Licensed private hospital, maternity homeand nursing home
37B Building used for research
37C Building used for warehouse
37E Building used for approved service project
37F Building used for hotelB. H. Loh & Associates
Industrial Building Allowance
Schedule 3, ITA 1965
Description
37G Airport
37H Motor racing circuit
42A Building used for a manufacturing, hotel ortourism business or an approved service project
42B Building used for a school or an educationalinstitution.
• The building used for his business
B. H. Loh & Associates
If part of asset (with significant value) that is replacedwith a new part, the existing / old part is deemed adisposal
For the part of disposal :
1) QE – using discounted value basis / method (DV),
2) Residual expenditure – QE reduced by allowancemade prior to disposal,
The allowance for new part will be calculated basedon normal treatment.
Disposal of part of asset
B. H. Loh & Associates
Old engine dispose Entire New
RM5,000 asset machine
New machine cost CA fully CA fully
QE : RM120,000 RM40,000 claim claimOld new
entire
1.1.2016 1.6.2019 31.12.2020 31.12.2022
B. H. Loh & Associates
Disposal of part of asset
YA Description RM
2016 Qualifying Expenditure 120,000
Less : IA (120,000 x 20%) (24,000)
AA (120,000 x 20%) (24,000)
Residual Expenditure 72,000
2017 Less : AA (120,000 x 20%) (24,000)
Residual Expenditure 48,000
Disposal of part of asset
A) Capital allowance for an entire assets
B. H. Loh & Associates
Disposal of part of asset
YA Description RM
2017 Residual Expenditure 48,000
2018 Less : AA (120,000 x 20%) (24,000)
Residual Expenditure 24,000
2019 *Less : AA (87,000 x 20%) (17,400)
6,600
2020 Less : AA (the balance of RE) (6,600)
Residual Expenditure Nil
B. H. Loh & Associates
Computation QE after deduction cost of old engine
Cost of old engine reverted at the time of YA 2016from a new machinary cost by discounted value (DV)
40,000 = 33,000
1.054
QE reduced by allowance made prior to disposal,
B. H. Loh & Associates
Disposal of part of asset
QE of entire asset at the time 1/1/2016 120,000
#Cost of old engine at the time 1/1/2016 (33,000)
*QE of asset after the disposal of old engine 87,000
Disposal of part of asset
YA Description RM
2016 # Qualifying Expenditure (DV) 33,000
Less : IA (33,000 x 20%) (6,600)
AA (33,000 x 20%) (6,600)
Residual Expenditure 19,800
2017 Less : AA (33,000 x 20%) (6,600)
Residual Expenditure 13,200
B) Capital allowance for a old engine
B. H. Loh & Associates
Disposal of part of asset
YA Description RM
2017 Residual Expenditure 13,200
2018 Less : AA (33,000 x 20%) (6,600)
Residual Expenditure 6,600
2019 *Old engine disposal value (5,000)
Balancing allowance 1,600
B. H. Loh & Associates
Disposal of part of asset
YA Description RM
2019 QE 40,000
Less : IA (40,000 x 20%) (8,000)
AA (40,000 x 20%) (8,000)
Residual expenditure 24,000
2020 Less : AA (40,000 x 20%) (8,000)
Residual expenditure 16,000
C) Capital allowance for the new machine
B. H. Loh & Associates
Disposal of part of asset
YA Description RM
2020 Residual expenditure 16,000
2021 Less : AA (40,000 x 20%) (8,000)
Residual expenditure 8,000
2022 Less : AA (40,000 x 20%) (8,000)
Residual expenditure NIL
B. H. Loh & Associates
A resident company incorporate in Malaysia withpaid-up capital not more than RM2.5 M. (Para 19A,Sch 3)
100% CA on small value asset (SVA) :
1. Cost not more than RM1,300,
2. Maximun of RM13,000.
Wef YA 2016
B. H. Loh & Associates
Small value asset
If the taxpayer fails to furnish a tax return (Sec 112) :
(i) Single offence :
1. Fine not less than RM200.00 and not more thanRM20,000,
2. Imprisonment not exceeding 6 months, or both.
Penalties
B. H. Loh & Associates
(ii) Two YAs or more offences :
1. A fine not less than RM1,000 and not more thanRM20,000 or imprisonment not exceeding 6 monthsor both, and
2. Special penalty treble (3 times) amount of taxdetermined on best judgment by DGIR.
Penalties
B. H. Loh & Associates
If a taxpayer who fail to furnish correct particularsrequired by DG in a tax return form is convicted anoffence under Sec 120
Example :
1. Business code
2. ROC number
3. Business address.
Penalties
B. H. Loh & Associates
If the taxpayer failure to furnish correct particulars(Sec 120(1)(h))
An offence
1. Fine not less than RM200 and not more thanRM20,000 or
2. to imprisonment for a term not exceeding 6 monthsor to both.
@ Applicable to LLP, company, trust body and co-operative society
Penalties
B. H. Loh & Associates
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : [email protected]
Web-site / facebook : bhloh.com.my
Thank you
B. H. Loh & Associates